Increased construction projects fuelling heightened demand in March
The housing market in Stuttgart is facing a significant challenge, with the situation resembling a social time bomb, according to recent observations. The Baden-Württemberg Construction Industry has stepped forward with recommendations to boost construction activity and alleviate the housing shortage in the city.
Thomas Moeller, CEO of the Baden-Württemberg Construction Industry, has emphasized the need for decisive measures. He suggests a reduction in the real estate transfer tax, further expansion of social housing subsidies, and a determined reduction in bureaucracy and excessive building standards to stabilize the market.
The construction industry in Stuttgart has seen a positive trend, with a 22.8% increase in incoming orders across all sectors, as reported by the State Statistical Office. This growth is particularly pronounced in the economic construction sector, where there was a 140% increase in incoming orders in March. Public construction orders in Stuttgart increased by 97.6% in the same month, and road construction orders saw a 33.4% increase.
However, the residential construction sector's slight increase in turnover of 3.6% and the 3.4% rise in building permits in March, although positive, still leave the sector at a very low level.
The industry's main concern lies in the "massive investment backlog" in infrastructure. Too little is currently being done to maintain roads, railways, and bridges, which is a pressing issue that needs immediate attention.
The industry stresses the importance of maintaining and expanding the social rental housing stock. Efforts are being made to negotiate extended rent and occupancy commitments with housing companies to preserve available housing units. Accelerating subsidized housing programs is also a key strategy to address the historically high demand for social housing and the long waiting times for eligible households.
Wolfgang Leja, a representative from the construction industry, can be reached at w.leja@our website for further information and discussions on these matters. The industry also hopes for the special fund of the federal government to support their initiatives.
[1] Source: Baden-Württemberg Construction Industry Press Release, [Date]
Economic and social policy discussions have emerged, with industry leaders focusing on alleviating Stuttgart's housing crisis. Wolfgang Leja, a representative from the construction industry, has advocated for expanding subsidized housing programs, accelerating waiting times for eligible households, and negotiating extended rent and occupancy commitments with housing companies to preserve available units. The intended goal is to enhance the social housing stock, which coincides with the sports sector's ongoing initiatives to facilitate inclusive participation in recreational activities for all residents, thereby fostering a more cohesive and engaged community.
